D Question 16 nts QUESTION 1: EAGLE LTD 35 pts Eagle Ltd makes shoes in two ranges such as Basic and Super. Information relating to each of these products is set out below: ordings Selling price per unit Material Cost per unit Labour time per unit se Labour rate per hour Basic Super 160 230 13 70 4hrs 4hrs 16 16 Number of Units Produced Each Year 2,000 3,000 Cost Drivers Number of Quality Inspections 60 60 740 Number of Sales Invoices Issued each year 300 1,700 Number of batches per total production 45 155 Machine Hours total 800 7,700 The Director of Eagle Ltd has produced the following analysis of total overheads per year and their relevant cost drivers: Cost Pool () Cost Drivers 140,000 Number of Quality Inspections Quality Inspection Number of Sales Invoices Issued each Sales Invoicing 80,000 year Material Handling Number of batches per total production 60,000 Other Overheads 120.000 Machine Hours total 400,000 Required: Calculate full cost per unit and profit per unit for each product using: Traditional full cost method of overhead absorption (based on direct labour hours) (15 marks) -Activity-based costing (ABC) method. (20 marks) (Total: 35 marks)